(The Associated Press circulated the following article on January 31.)
SIOUX FALLS, S.D. — A Federal Railroad Administration ruling announced Wednesday triggered a 90-day period during which the agency must approve or reject a requested $2.3 billion loan for the Dakota, Minnesota and Eastern Railroad’s planned coal train project.
“The final decision will be made after thorough consideration of an extensive and independent evaluation of the railroad, the proposed project and the … loan application,” the agency said in a release.
The FRA said it has determined the DM&E’s project has met the requirements of the federal environmental review process. The release of the agency’s final environmental review starts the time frame for the loan decision, according to the release.
The proposal has drawn heavy opposition in Rochester, Minn., home of the Mayo Clinic.
The DM&E wants to add track to the Powder River Basin coal fields in Wyoming and upgrade its existing line in South Dakota and Minnesota. The $6 billion project would involve building about 280 miles of new track and upgrading 600 miles of existing track so trains could haul coal for power plants.
The agency said that if the loan is approved, it will require the Sioux Falls-based railroad to make additional safety improvements at 10 highway-grade rail crossings in South Dakota and Minnesota and require that locomotives used west of Huron meet or exceed federal emission standards to reduce air pollution in national park areas.
The agency considered nearly 2,500 public comments before reaching its conclusion, according to the release.
The Rochester Coalition said the ruling was not a surprise.
“We disagree with the FRA’s environmental ruling, but it was not unexpected,” spokesman Chris Gade said in a separate statement. “The FRA’s reliance on an incomplete and inadequate environmental review casts a cloud of doubt over the ruling.”
The federal loan “can and should be stopped,” Gade said.
The Mayo Clinic, Olmsted County, the city of Rochester and the Rochester Chamber of Commerce make up the Rochester Coalition, which wants the DM&E to bypass Rochester because of the impact of the increased train traffic on the city and Mayo.
Minnesota leaders reaffirmed their support for Rochester on Wednesday night.
“As the Department of Transportation approaches a final decision on this loan, it must confront very serious questions about the loan application, and it must make sure that dozens of high-speed freight trains do not run right through the heart of Rochester and the Mayo Clinic,” Democratic Sen. Amy Klobuchar, D-Minn., said in another statement.
GOP Gov. Tim Pawlenty said in his own statement that the loan should not be approved “until the concerns of the community can be addressed.
Republican Sen. Norm Coleman said he still hopes a “win-win solution” can be reached as the Transportation Department tries to broker a solution between the city and the railroad, but in the meantime he will move forward on a legislative strategy to protect Rochester.
“I still have hope that a mitigation plan can be agreed upon, and I will remain engaged in those negotiations, but as I have said all along, I will work to stop the project if the concerns of Rochester are not addressed,” Coleman said in a statement.
Rep. Tim Walz, a Democrat who represents southern Minnesota including the Rochester area, issued a statement saying he’ll work to ensure that the officials reviewing the loan package adequately address concerns about safety, transparency and accountability.
“This loan is the largest taxpayer-funded loan to a private company in American history and is deserving of an appropriately large amount of input from the taxpayers and oversight from the Congress,” he said.